HC Deb 10 November 1982 vol 31 c543
16. Mr. Wardell

asked the Secretary of State for the Environment how many local housing authorities are currently showing a surplus on their housing revenue accounts; and how many are estimated for 1983–84.

Mr. Stanley

Actual data on authorities' housing revenue accounts for the current financial year will not be available until the summer of next year. No estimates can yet be made for 1983–84.

Mr. Wardell

Do not the Secretary of State's departmental calculations show that, as a result of the £1 a week rent increase from April next year, at least 305 out of 367 housing authorities will have a profit on their housing revenue account? Will he confirm that it is the Government's intention to make maximum profits out of council house tenants, as demonstrated by the 133 per cent. rise in rents since May 1979, compared with an average rise in earnings, by April 1983, of only 51.7 per cent?

Mr. Stanley

The hon. Gentleman says that that is "the Government's intention", but I hope that he will look at the rent increases made by individual local authorities. In particular, I hope that he will consider the rent increases levied by several Labour-controlled authorities. If he bears in mind the details of what has happened on the ground, he will realise that a significant number of Labour-controlled authorities, in both the last financial year and this one, are voluntarily choosing to raise rents by an amount in excess of the assumption used by my right hon. Friend the Secretary of State.

Mr. Squire

Did not the Labour Government resolve to increase the proportion of the revenue account that is met by rents? If so, have we not had an example of the Labour Party saying one thing in Government and something else in Opposition?

Mr. Stanley

My hon. Friend is right. Since we came to office it has been necessary to increase rents in real terms because, contrary to the protestations of the Labour Party there was a substantial decrease, in real terms, when that party was in Government.

Mrs. Ann Taylor

As the Minister has accepted that Labour councils have had to increase rents because of the Government's direction, will he now have words with the Secretary of State? As the Secretary of State has changed his mind on the policy of local government spending, will he suggest to him that he should also change his mind on the "no profits" rule and reinstate that rule on housing revenue accounts, to ensure that the profits that he is forcing local authorities to make are ploughed back into council housing and that tenants derive some benefit from them?

Mr. Stanley

I do not think that the hon. Member listened to my reply to the original question. Contrary to what she says, a significant number of authorities—as I have already made clear—including many Labour-controlled councils, have voluntarily chosen to increase rents by an amount greater than the assumption used by the Secretary of State.